The Swedish technology company is likely to announce additional job cuts in the coming days in other countries, which could be to the tune of several thousands
Ericsson plans to cut nearly 1,400 roles in Sweden. (Credit: Arild Vågen/Wikipedia.org)
Swedish technology company Ericsson is reportedly planning to cut nearly 1,400 jobs in its home country as part of its implementation of cost-cutting strategies.
The layoffs are expected to impact nearly 10% of the networking and telecommunications major’s workforce in Sweden, reported EE Times Europe.
Ericsson is likely to announce additional job cuts in the coming days, which will total several thousands in other countries, reported Reuters, citing two undisclosed sources claiming to have information about the matter.
In December 2022, the tech major announced a structural cost cut of SEK9bn ($871.5m) by the end of 2023.
According to the company, 70% of the cost cutitng will be done in the cost of goods sold while the remaining in selling, general, and administrative expenses (SG&A).
Ericsson also confirmed its commitment to reach the lower end of its long-term target of an EBITA margin in the range of 15 to 18% by 2024.
Citing a company spokesperson, the news agency reported that the Swedish tech major has reached agreement with Swedish unions to manage reductions in the headcount.
Besides, it has been reported that the company plans to make the job cuts via a voluntary programme.
Ericsson is also said to have been negotiating for months with its employee union in Sweden on managing the cost reductions.
In November 2022, Ericsson announced plans to invest tens of millions of pounds over the next 10 years in the UK to focus on 6G research.
The company also aims to promote the global development of future communications and standards of the mobile network technology.
Ericsson’s layoff plan follows a series of mass job cuts in the technology sector with the most recent being Zoom Video Communications’ decision to lay off nearly 1,300 employees.
Other layoffs include that of Dell Technologies, Amazon, Microsoft, Meta, and Twitter.